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Post# of 319093
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Sunday, 03/28/2010 3:26:19 PM

Sunday, March 28, 2010 3:26:19 PM

Post# of 319093
Some CDIV observations as we start the new week with CDIV at .40

1. Slow and steady we have continued to move up regardless of some short term interest. We have long term interest as we understand the big picture.

2. Since the call at .0007 last February the smart CDIV holders have long interest and have also added all along the way.

3. Like any stock with exposure on IHUB there have been some who jumped in when it dropped into the low .30's and are probably out with a nice 10-30% profit and they have moved on to something else.

4. There have been new CDIV holders who bought clear up to .48 and are hoping to make their account green. One of those buying at .48 was Monk who knows what he holds. I have had friends buy clear up to .46 and they are holding.

5. We see that this is building and building and from about .18 we have continued to see the price of CDIV rise and the short squeeze not happen...YET.

6. The higher we go before the short squeeze with CDIV then the higher the price goes when it does squeeze.

7. The MM's have reduced the volume this last week and are at a crossroads. They have to do something soon.

8. Do they raise the price and start covering and allow the volume to increase?

Do they try to lower the price and try to shake shares out?

In both of these cases they have to allow an increase in volume because by raising the price others will buy and drive it further up. By lowering the price others will buy more and cause an increase in the air shares level for CDIV.

9. Or they could sit on it and try to hold it with low volume here but that is only a Temporary option...it is the calm before the storm.

10. Regardless what is done in this "Fair and Orderly Market" that the MM's have caused with CDIV there are many eyes on this stock and many who will and have been buying all the air shares they can at whatever the prices.

Soon IMHO we will see CDIV approach and move past the .50 area and the volume will pick up going into this area and beyond.

11. Something more important than price to consider is the volume.

If you will look at the increase in volume and (volume X days) you can focus on that rather than the price as it goes North.

That will allow you to get the maximum profit for your CDIV shares instead of watching the price increase and become fixated just by the price.

12. Example of watching the (volume X days) would be:

CDIV at say .53 and the volume for that day increases to say 2 Million. The next day the price goes to say .57 at the open and .65 at the close.

You are excited about the price increase of say .08 for the day but in reality the second day you had 3.5 million so for two days you now have 5.5 million and the price increased from .53 to .65.

The real big picture is the total volume for two days of 5.5 million which would only be about 1/12 th of the total volume needed to not only cover the approximate 30 million plus short but to also allow the MM's to buy real shares and ride the stock upwards.

So now lets say that the Third day we see volume of 4 million and the price opens the day at .75 and closes the day at 1.22.

Your now ecstatic and want to take your profits from .40 since you got in on Friday and are happy with a 3 bagger...but wait....The volume has now been 9.5 million for three days and there is still maybe 20 to 40 million in volume going forward to allow for a complete cover and a profit for the MM's as CDIV goes UP.

Do you see what I am getting at now? Watch the volume and add it up each day to see how close we are to the cover and the top or close to the top that needs to be hit.

Would you not rather hit close to the top and make the MM's pay more for your shares than selling them out way too cheap?

So you can see just using an example that we could easily hit into the dollar area in just a few days of covering and not even scratched the real target price you might wish to sell your CDIV shares at far down the road by watching the volume X days instead of just the CDIV share price.

Just some thoughts and if you will not pay attention just to price you will see IMHO a much higher price for your CDIV shares farther into the shorts squeeze rather than jumping out within a day or two and wondering why those CDIV shares you no longer own went into multiple dollars and not just multiple cents.
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